This Form Should Be Read in Conjunction with the Home Support Loan Application and Fact Sheet
This form should be read in conjunction with the Home Support Loan application and Fact Sheet.
Introduction
Defence Service Homes (DSH) loans are provided by Westpac Banking Corporation. DSH will issue you with a Certificate of Entitlement once your application has been approved. Westpac needs this Certificate to consider a subsidised DSH Home Support Loan (HSL).
Loan details
The maximum HSLis $10,000 over a term of 25 years. The minimum amount you can borrow is $1,000. The interest rate you pay will be a variable rate set 1.5% below the average standard variable home loan rate (benchmark) calculated monthly, but will not exceed 6.85% per annum. If you do not borrow the maximum loan of $10,000, you can apply for the difference between the amount(s) borrowed and the maximum at a later date.
Please note that Home Support Loans are not portable to another property and must be repaid if you sell your home.
What you need to do
All relevant questions on the application form should be answered and the form must be signed. Incomplete answers will delay the processing of your application. Please attach a separate sheet if you wish to provide any special information in support of your application.
Page 4 - Attachments
Copies of relevant documents should be attached to the form, unless you have previously sent them with an earlier Home Support Loan application.
What DSH will do
We cannot issue a Certificate of Entitlement until all our requirements have been met.
If you have a current DSH loan(s), you cannot obtain a Home Support Loan unless the balance of that existing loan(s) is less than $10,000.
If our investigation of your application reveals that you have an entitlement to a DSH loan, and there is no bar to the use of that entitlement, then you cannot obtain a Home Support Loan unless your DSH loan entitlement, or any entitlement and existing loan balance(s), is less than $10,000.
If this situation applies, we will process your application under the other provision(s) of the DSH Act.
Once your eligibility and entitlement have been established, and all our requirements have been met, we will send you a Certificate of Entitlement. You should then present the Certificate to any Westpac branch.
What Westpac will do
Westpac will determine the actual amount you can borrow. You will have to meet lending criteria, which include your ability to repay the loan, and hold sufficient equity in your home. If you need additional finance, you may be able to obtain a Supplement Loan from Westpac at their first mortgage rates. You may borrow from another lender but this may involve additional fees.Terms and conditions for either type of loan are available on application to Westpac.
IMPORTANT: If your HSL loan application is approved by Westpac, the Bank will normally secure the loan by way of a FIRST mortgage over the property. This is a requirement of the DSH Act. If you currently have a mortgage on your home, you will need to ensure that your existing mortgagee will allow Westpac to hold first mortgage security.
Westpac may only consider securing the HSL loan by way of a second mortgage if you have finance from another Government housing scheme, either Federal or State, and that scheme requires first mortgage security.
Westpac will advise of the fees and charges that apply to HSL and Supplement Loans. You should also confirm with the Bank the amount of Government charges, such as stamp duty, mortgage registration fees etc. that are payable in your case.
